National Thermal Power Corporation

The National Thermal Power Corporation (NTPC) is an Indian power generation company. The company states that it has 28,840 megawatts (MW) of installed generation capacity which it owns. Of this, over 86% is from coal-fired power stations. NTPC also has interests in an additional 2,864 megawatts of coal and gas fired capacity through joint ventures. NTPC describes itself as "the largest thermal power generating company in the country".

Chairman's 2009 Address to shareholders
In his address to shareholders on the performance of the company in 2008-2009, the company's Chairman & Managing Director, R.S. Sharma, stated that "in order to take care of the global climate change concerns, your company is making use of the Clean Development Mechanism (CDM)." Sharma boasted that the company "has made a pioneering effort in getting approved the methodology for super-critical thermal power projects" under the CDM. "Several projects of NTPC are in the CDM approval pipeline," he said.

While the company's primary business interests are based around projects in India, Sharma explained that NTPC "is taking steps to have global presence" such as in its joint venture with the Ceylon Electricity Board for the construction of the 500 megawatt Sampur power station in Sri Lanka. Sharma also stated that the company was "also preparing to bid for engineering consultancy for coal based power plants in Vietnam."

He explained to shareholders that "your Company is going beyond national boundaries to secure fuel for its generation business and we are looking at acquisition of coal blocks in Indonesia, Mozambique and South Africa and is pursuing for procurement of 3 mtpa LNG from Nigeria in lieu of NTPC setting up coal and gas based power plants in that country."

Rising demand and buying coal mines overseas
According to the Economic Times, NTPC coal demand is likely to reach 165 million tonnes (MT) in financial year 2011-12. As of 2010, NTPC generates over 32,000 MW of power, of which nearly 60 per cent is coal-based. It is planning to ramp up this capacity to 50,000 MW by March 2012.

On July 14, 2010, NTPC Chairman R.S. Sharma said the company is seeking to buy coal mines overseas that may source as much as 67 percent of the NTPC's current imports of coal. The utility will use part of its $3 billion in cash reserves and also raise debt to fund the purchase of mines in Australia, Indonesia, and Mozambique that can supply an estimated 10 million metric tons of coal a year.

In December 2010, the Economic Times reported that NTPC may pick up stake in two coal mines in Indonesia, East Kalimanthan and Sumatra. The company may also acquire coal blocks in Queensland and North South Wales, and has identified 2-3 such properties.

Importing coal
In March 2011, NTPC said it will float a tender to import four million tonnes of coal, the first time the company will import coal directly. Previously, NTPC placed orders for importing coal to state-run firms Minerals & Metals Trading Corporation and State Trading Corporation. According to Chairman and Managing Director, Arup Roy Choudhury: “In the next financial year, we plan to import 16 million tonnes of coal. Of this, 12 million tonnes have already been arranged by STC and the remaining, we will do directly." The tender will be floated by the end of March 2011.

NTPC will use 12.5 million tonnes of imported coal by the end of the current financial year. The company will also ask firms to deliver coal at their plants. The state-run power firm plans to add about 3,150 Mw of capacity in the current financial year, and another 5,500 Mw in the next financial year. It has also set a target to raise its current capacity of 33,000 Mw to 75,000 Mw by March 2017.

Overseas coal plants
On March 9, 2011, NTPC said it is planning joint ventures in three months to build USD $3.5-billion power plants in Bangladesh and Sri Lanka, marking the firm's first overseas venture. NTPC, whose 85% of current 33.2 gigawatts capacity is coal-based, said it has no plans to acquire overseas coal mines for at least two years as supplies for existing plants have been locked-in, Arup Roy Choudhury told Reuters in an interview. In August 2010, NTPC agreed with Bangladesh Power Development Board (BPDB) to set up two coal-fired power plants of 1320 megawatts (MWs) capacity each in an equal partnership venture. NTPC has also agreed to set up a 500 MW plant in Sri Lanka at a cost of about USD 500 million.

NTPC, which generates about 30% of the country's power, plans to add 25,000 MWs of electricity by 2017. India coal imports have grown rapidly as electricity demand grows. Power firms, including Reliance Power, Tata Power and Adani Enterprises have acquired coal assets overses, besides importing coal from Russia, but NTPC said it has no such plans for at least the next two years. NTPC plans to build coastal power plants based on imported fuel as hurdles like inadequate rail infrastructure pose problems in coal delivery to power plants. NTPC said it could source coal from Indonesia and a small portion from Australia for these plants.

Pakri Barwadih mine
In December 2010, Leighton Holdings subsidiary Thiess won a $5.5 billion coal mining contract to develop and operate the Pakri Barwadih Mine in the state of Jharkhand in India's east. The contract will run over 22 years for National Thermal Power Corporation. Revenue is expected to be $500 million in the first five years, with peak production of 15 million tonnes to be reached in three years.

India is the world's third-largest coal producer but the world's fourth-largest importer. More than half India's electricity generation is coal-fired. NTPC wants to more than double its power generation capacity by 2017 and produce more than a quarter of its own coal. As of 2010, its supply comes from Coal India and from imports.

Disputes over North Karanpura power project
In April 2011, it was reported that NTPC and coal ministries were arguing over the relocation of the North Karanpura power project in Jharkhand. NTPC has rejected the coal ministry’s argument that the proposed 1,980-MW (3 x 660-MW) power plant at Chatra district would cut off access to an estimated six billion tonnes of coal reserves, as well as 300 metres of coal seams amenable for opencast mining. The reserves, the ministry argues, would be sterilised owing to the location of the proposed plant, the catchment area of a water dam and other infrastructural facilities. As a way out, the minitry had proposed developing the project as a joint venture between Coal India (CIL) and NTPC. CIL could facilitate acquisition of land at a new site and assist in getting statutory clearances. According to the coal ministry, the project size could also be increased to 4,000 Mw at the new non-coal bearing site. But the NTPC rejected the compromise formula, and the dispute is headed for the Cabinet.

NTPC has already made some investment in the project. NTPC has proposed reducing its land requirement for the plant or shifting to a location where the amount of the reserves are least disturbed. The coal ministry, however, maintains that even if the plant is located to an area where coal is at depth of 500 metres, it would imply blocking more coal reserves due to the need for power and coal evacuation and transportation corridors. A coal ministry official said CIL could take over the land acquired by NTPC and reimburse the expenditure.

Coal plant in Orissa approved
On June 29, 2011, the Ministry of Environment and Forests gave approval to three proposed plants in Orissa and cleared six coal blocks related to the plants. The Dulanga coal block was allocated to NTPC's 1,600-MW power plant. Five of the six coal blocks were in areas the Environment Ministry had previously defined as no go areas for mining in 2010, including Dulanga, as those areas had over 30 per cent gross forest cover.

Existing coal-fired power stations
NTPC has 15 coal based power stations in India which it owns and operates. These have an installed capacity of 24,885 MW. These power stations are:


 * Singrauli power station in Uttar Pradesh, which has an installed capacity of 2,000 MW;
 * Korba power station in Chhattisgarh, which has an installed capacity of 2,100 MW;
 * Ramagundam power station in Andhra Pradesh, which has an installed capacity of 2,600 MW;
 * Farakka power station in West Bengal, which has an installed capacity of 1,600 MW;
 * Vindhyachal power station in Madhya Pradesh, which has an installed capacity of 3,260 MW;
 * Rihand power station in Uttar Pradesh, which has an installed capacity of 2,000 MW;
 * Kahalgaon power station in Bihar, which has an installed capacity of 2,340 MW;
 * Dadri power station in Uttar Pradesh, which has an installed capacity of 1,330 MW;
 * Talcher Kaniha power station in Orissa, which has an installed capacity of 3,000 MW;
 * Unchahar power station in Uttar Pradesh,which has an installed capacity of	1,050 MW;
 * Talcher Thermal power station in	Orissa, which has an installed capacity of 460 MW;
 * Simhadri power station in Andhra Pradesh, which has an installed capacity of 1,000 MW;
 * Tanda power station in Uttar Pradesh, which has an installed capacity of 440 MW;
 * Badarpur power station in Delhi, which has an installed capacity of 705 MW; and
 * Sipat-II power station in	Chhattisgarh, which has an installed capacity of 1,000 MW.

NTPC is also a joint venture partner in a further four coal-fired power stations. These are:
 * Durgapur power station in	West Bengal, which has an installed capacity of 120 MW;
 * Rourkela power station in	Orissa, which has an installed capacity of 121 MW;
 * Bhilai power station in Chhattisgarh, which has an installed capacity of 574 MW; and
 * Kanti power station in Bihar, which has an installed capacity of 110 MW.

Proposed coal-fired power stations
On its website NTPC lists proposed coal-fired additions to its power plant fleet to 2017 as being:


 * NCTPP II power station in Uttar Pradesh, a 980 MW power station comprising two 490 MW units;
 * Korba III power station in Chhattisgarh, a 500 MW power station based on one 500 MW unit;
 * Sipat I power station in Chhattisgarh, a 1980 MW power station comprising three 660 MW units;
 * Farakka III power station in West Bengal, a 500 MW power station based on one 500 MW unit;
 * Indira Gandhi Super Thermal Power Project, a joint venture with Indraprastha Power Generation Company Limited (IPGCL) & Haryana Power Generation Corporation Limited (HPGCL) in Haryana, a 1500 MW power station comprising three 500 MW units;
 * Simhadri II power station in Andhra Pradesh, a 1000 MW power station comprising two 500 MW units;
 * Vallur I power station in Tamilnadu, a joint venture with TamilNadu Electricity Board (TNEB) for a 1000 MW power station comprising two 500 MW units;
 * Vallur I Phase-II in Tamilnadu, a joint venture with TNEB for a 500 MW power station based on one 500MW unit;
 * Bongaigaon power station in Assam, a 750 MW power station based on three 250 MW units;
 * Mauda power station in Maharashta, a 1000 MW power station comprising two 500 MW units;
 * Rihand III power station in Uttar Pradesh, a 1000 MW power station comprising two 500 MW units;
 * Vindhyachal-IV power station in Madhya Pradesh, a 1000 MW power station comprising two 500 MW units;
 * Nabinagar power station TPP-JV with Railways in Bihar, a 1000 MW power station comprising four 250MW units;
 * Barh II power station in Bihar, a 1320 MW power station comprising two 660 MW units; and
 * Barh I power station in Bihar, a 1980 MW power station comprising three 660 MW units.

Contact details
NTPC Limited NTPC Bhawan, SCOPE Complex, Institutional Area, Lodhi Road, New Delhi - 110003 Phone: 91 11 24360100 Fax No.: 91 11 24361018 Email: info AT ntpc.co.in Website: https://www.ntpc.co.in

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